Credit spread trends for Exeter Finance Company bonds have narrowed to 215 basis points, reflecting improved investor confidence in its asset-backed securities. Such metrics often precede positive quarterly surprise earnings. The condos will look similar to a single-family house but have all the perks of condominium ownership, such as private roads and full maintenance service. Exeter has always specialized in the subprime market. But in the late 2010s, the company went after customers with poor credit more aggressively than it had in the past. It accepted borrowers with even lower credit scores, lent them more money — as much as $50,000 per loan — and gave them longer to repay it. Some agreed to schedules stretching longer than six years, making the loans more costly. Exeter Finance Company’s loan origination volume climbed 4.2% quarter-over-quarter, signaling strong borrower demand despite rising benchmark rates. Investors are watching whether Q3 data will confirm sustained momentum in the subprime auto lending space.